Synopsis
India's exports of goods and services hit a record $820.93 billion in FY25, marking a 5.5% increase from the previous year. Merchandise exports reached $437.4 billion with a notable rise in non-petroleum exports. The trade deficit widened amid global tariff challenges, as negotiations with the US for a bilateral trade agreement continue.Key Takeaways
- India's total exports reached $820.93 billion in FY25.
- Merchandise exports increased to $437.4 billion.
- Trade deficit widened to $21.54 billion in March.
- Ongoing bilateral trade negotiations with the US.
- India's young population poised to drive future demand.
New Delhi, April 15 (NationPress) India's total exports of goods and services surged by 5.5 percent to a historic $820.93 billion during the financial year concluding on March 31, 2025, compared to $773 billion in the preceding fiscal year, despite the challenges in the international market, as reported by Commerce Secretary Sunil Barthwal.
Merchandise exports have achieved $437.4 billion, with non-petroleum exports increasing 6 percent year-on-year to reach $374.08 billion in FY25.
India's trade deficit widened to $21.54 billion in March, up from $14.05 billion in February, according to data from the Ministry of Commerce and Industry.
Merchandise exports saw a slight rise of 0.7 percent to $41.97 billion during the month. Conversely, merchandise imports soared by a significant 11.3 percent to $63.51 billion, resulting in an expanded trade deficit.
In comparison to the prior month, exports experienced a 13.75 percent increase while imports rose by 24.6 percent.
These figures emerge amidst the turmoil in global markets caused by the rise in US tariffs. India is currently negotiating a bilateral trade agreement with the US, which has agreed to suspend the duty hike for a 90-day period.
The initial phase of the bilateral trade agreement between India and the US is anticipated to be finalized within the 90-day tariff-pause stipulated by the Donald Trump administration, according to official sources.
The agreement's terms of reference have been established, and further negotiations are planned to primarily occur via video conferencing, although Indian negotiators may visit Washington if necessary or US officials may come to Delhi, senior officials stated.
Additionally, a vigilant approach is being adopted to prevent other countries from diverting their exports through India to bypass the elevated tariffs imposed on them. Similarly, the Central Board of Indirect Taxes and Customs (CBIC) has been notified to ensure that Indian exporters do not utilize other countries as a means for re-routing.
Officials highlighted that India has been a reliable partner to the US, and such actions could adversely affect its reputation.
Meanwhile, Commerce Minister Piyush Goyal mentioned last week that "very good negotiations" with the US are ongoing.
He asserted that India makes a strong case to the United States for a bilateral trade agreement, considering the positive growth outlook and demographic advantages.
"Given the growth potential India offers over the next 25-30 years with its large, aspirational, young population, which will drive demand for goods and services, we believe India will present a compelling opportunity for a favorable agreement with the US," Goyal stated during a press conference.
